frightful across much of the u.s. on christmas day. it's not going to get much better today. there's still a threat of tornadoes in the south, a wintry mix that's forecast to blow through much of the midwest and a winter storm watch has been issued for parts of new england. at least three deaths are being blamed on yesterday's storms. a series of twisters from the deep south blew off roofs and knocked down power lines. icy roads caused a 21-vehicle pile-up in oklahoma, and more than 500 flights were canceled nationwide. edward lawrence is in washington. edward, good morning. >> reporter: these were vicious, fast-moving storms that ripped across the south. in addition to the deaths, the work crews in the south are working to restore the power in at least five states because of the tornadoes and the blizzard conditions in the midwest. >> reporter: a christmas day tornado tore three mobile, alabama. >> there it is. >> joe michael love pulled out

his cell phone to record the twister while miles away it destroyed a church and homes and his son's high school. >> the van is almost destroyed. the fieldhouse is gone. just all the portable buildings for classrooms are gone. >> reporter: here in houston, texas, the tornado destroyed some buildings and tore down power lines. francis lowe and her husband couldn't get away in time. >> we tried to leave at first but could't because the truck was off the ground, and it wouldn't go. finally, it touched the ground, and we took off. >> reporter: damage from a tornado in pearl river, mississippi, stretched a mile wide. eight people were taken to the hospital. ted williams' family was home celebrating christmas when the tornado hit. >> we went in the laundry room and sat down and hunkered down. >> reporter: further north ice and snow covered the roads in oklahoma. >> i got my chains on. i'm probably the only one with chains on driving around going 5 miles an hour. >> reporter: the storm is picking up steam as it heads through arkansas and into the midwest. >> within those warning areas

blizzard conditions are expected over the next 24 hours or so. >> reporter: tomorrow there could be up to a foot of snow in many parts of new england. >> and the storm is covering a massive area at the moment. now, cities on the east coast are preparing for snow and possibly severe weather. >> edward lawrence from washington, thank you. the looming fiscal cliff is forcing president obama to cut short his christmas vacation. the deadline is only six days away. the president plans to leave hawaii today and head back to washington to meet with lawmakers. where heed he and his wife, michelle, spent christmas visiting u.s. troops and their families in hawaii. to beat the january 1st deadline senate majority leader harry reid is said to be crafting his own fiscal package. it would extend the bush era tax cuts for households making less than $250,000, extend long-term unemployment, short-term spending cuts, and make a scheduled drop in medicare reimbursement to doctors. house speaker john boehner said they've had no communication with senator reid. the exconwho ambushed and killed two volunteer

firefighters in upstate new york may have murdered his sister. her body was found yesterday, and police say william spamglor had the same kind of military rifle used in the connecticut school massacre. he left behind a chilling note. >> reporter: the christmas eve fire in western new york burned seven homes to the ground, but police say william spangler wanted to do much worse. he planned to burn down the entire neighborhood and "do what i like doing best, killing people." the 62-year-old shot at firefighters from a nearby bank. he killed two of them before taking his own life. police found his note and three guns, including a bushmaster

rifle, similar to the weapon used m connecticut school shooting. >> he is a convicted felon. he had murdered his grandmother in 1980. he bludgeoned her to death with a hammer. >> reporter: he served 17 years in prison, and after being released moved in with his sisters. investigators found the body in the charred rubble of his home and believe it could be his sister's. the firehouse has opened up its private medical for the men killed. people are leaving behind mrourz flowers and notes of thanks to honor the firefighters who lost their lives. 19-year-old thomas was filling in for a married firefighter so they could spend christmas. he was just named firefighter of the year two weeks ago. in his note spangler never explained why he wanted to kill. >> motive is always the burning question, and i'm not sure we'll ever have -- we'll never know what was going through his mind. >> reporter: friends and family can only prepare to bury their loved ones. tetiana anderson for cbs news

western morning. connecticut's gun sales shot up. >> reporter: at gun shows people stood in line hoping to get they are hands on the military style rifle used in the newtown, connecticut, school shooting, the ar-15. there's been a run on ar-15's at gun stores too. rick friedman owns rtft in randolph, new jersey. >> i normally sell 15 or 20 a month. i've sold 30 in the last three days. >> reporter: the reason, he says, is clear. >> because people want to make sure they can own them legally before they have that right taken away. >> reporter: the white house said after the newtown shooting that president obama supports a ban on assault weapons proposed by california democratic senator dianne feinstein. getting it through congress quickly is highly unlikely, but the mere mention of a ban is

enough to send sales soaring and, it's not just guns. brownells said it recently sold more than three and a half years worth of ar-15 magazines in three days. even before newtown, sales of guns and ammunition this year were surging. fbi background checks of potential gun buyers were up 31% in november 2012 over 2011. in a report issued prior to newtown, the market research firm ida's world that tracks the gun industry, found gun enthesists are working themselves into a frenzy over what another four years under the obama administration may hold for gun laws. chuck is an instructor at nova firearms in falls church, virginia, where they nearly sold out of ar-15's and high capacity magazines after newtown. >> so ironically this shooting is inspiring more people to buy this gun, the ar-15 and the high round magazines? >> if i could, i would give senator feinstein and the president salesmen of the year awards. >> reporter: senator feinstein

plans to introduce her bill to ban the sale or manufacture of assault weapons on the first day of the new congress in january. that's expected to trigger mother flurry of gun buying. chip reid, cbs news, washington. it's a heavy-hearted christmas in newtown, connecticut. 26 candles were lit on monday night, one for each shooting victim. they burned all christmas day. volunteers alternated in three-hour shifts to make sure the mramz never went out. the candles burned on a sidewalk memorial filled with teddy bears, flowers, and posters. coming up on "the morning news" prayers for peace. pope benedict calls for an end to violence in the middle east in his annual address. this is "the cbs morning news." it just wouldn't go away. my doctor diagnosed it as fibromyalgia, thought to be the result of overactive nerves that cause chronic widespread pain. lyrica is believed to calm these nerves. i learned lyrica can provide significant relief from fibromyalgia pain. and for some people, it can work in as early as the first week of treatment. so now i can plan my days and accomplish more.

lyrica is not for everyone. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior, or any swelling or affected breathing or skin, or changes in eyesight, including blurry vision or muscle pain with fever or tired feeling. common side effects are dizziness, sleepiness, weight gain, and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. with less pain, i'm feeling better now that i've found lyrica. ask your doctor if lyrica is right for your fibromyalgia pain. ask your doctor if lyrica is right he is a good little monkey and always very curious. one day george got an important letter. he's built a rocket ship to travel into space." google, how far is earth to the moon? the moon is 238,900 miles... "the great moment had come." 3, 2, 1... [ giggling ]

the latest coffee machine from nespresso. modtuitive. combines espresso and fresh milk. the new u. nespresso. what else? available at these fine retailers. 50,000 faithful gatherers in st. 50,000 faithful gatherers in st. peters square were there to hear pope benedict's christmas message.

he condemned violence in syria, mali and nij ear wra. he expressed hope that arab spring nations, including egypt, will rebuild societies based on justice and tolerance. the pope also prayed china's new leaders will shington's

ability to avert the fiscal cliff. on monday before closing for christmas, the dow lost 52 points, while the nasdaq dropped eight. new taxes to help pay for the affordable health care act take effect january 1st. the average american won't be spending more money to the irs. the wealthiest 2% of americans and the health care industry will pick up most of the tab. milk is a staple in every home, ask starting in the new year you could be paying twice as much for it. a government subsidy expires at

the end of this year. unless congress extends it, the cost could skyrocket to above $7 a gallon, putting a major hirchlg on families already struggling to make ends meet. bad news for retailers. holiday sales proved this year it was the weakest since 2008. one report put the increase at just 0.7%, are far below analyst predictions of 3% to 4%. superstorm sandy and the looming fiscal cliff disrupted the shopping season. and if you are returning my holiday gifts, have your right and a lot of patience. usa today reports 14 of 25 on-line retailers in one study are issuing refunds slower than last year. for in-store returns some retailers have shortened return windows and are charging restocking fees, especially for technology. >> thanks. straight ahead on your morning wednesday news, weather is coming up, and lebron james

takes it to the oklahoma city thunder in a rematch of the nba final. aww man. [ male announcer ] returns are easy with free pickup from the u.s. postal service. we'll even drop off boxes if you need them. visit usps.com pay, print, and have it picked up for free. any time of year. ♪ nice sweater. thank you. ♪ ♪ i got it made, i got it made ♪ ♪ i got it made fresh at subway ♪ ♪ breakfast made the way i say ♪ [ male announcer ] at subway, you got it made. try a steak, egg white & cheese, tricked out any way you want. subway. eat fresh. but the acidic levels in some foods can cause acid erosion. the enamel starts to wear down, and you can't grow your enamel back. my dentist recommended that i use pronamel, because it helps to strengthen the enamel.

and i believe it's doing a good job. here's a look at today's forecast in cities across the country. new york, wintry mix, 39 degrees. miami, afternoon thunderstorm, 82. chicago, some snow, 35 degrees. dallas, partly sunny, 35. los angeles, afternoon showers, 60 degrees. time now for a check of the national forecast. a line of storms creating

thunderstorms and blizzard conditions is moving east. alerts stretch from texas all the way to maine as it brings strong winds and heavy snowfall. another outburst of damaging winds and tornadoes is expected in much of the south, and in the west another storm is bringing rain as it moves inland with some heavy snow m mountains. in sports a christmas day rematch of last year's nba finals. lebron james led the miami heat with 29 points and nine assists. as miami squeaked by the oklahoma city thunder 103-97. kevin durant had 33 points for the thunder, but missed a game-tying shot in the final seconds. miami is now 19-6, matching the franchise best 25-game start. in los angeles the lakers won their fifth straight game. kobe bryant scored 34 points in the 194 victory over the knick. the knicks controlled most of the game led by j.r. smith's 24 points, but a strong fourth quarter for l.a. put them over

the top. in brooklyn celtics rondo scored 19 points as boston took on the nets. the celtics took control with fourth quarter runs. boston easily beat brock lynn 93-76. and it was a big night for the los angeles clippers. the reserve out for the starters in the 112-100 win over the denver nuggets. the clippers extended their winning streak to 14 games, and currently they hold the nba's best record at 22-6. when we return, another look at this morning's top stories, and the billions of dollars at stake for our nation's farmers. introducing u the latest coffee machine from nespresso. modular. intuitive. combines espresso and fresh milk. the new u. nespresso. what else? available at these fine retailers.

time for citi price rewind. because your daughter really wants that pink castle thing. and you really don't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it finds one, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok. [ male announcer ] now all you need is a magic carriage. citi price rewind. start saving at citi.com/pricerewind. the snow- covered roads thwarting drivers... and tornadoes caught on tape. "kids didn't wake up in the morning thinking that they' gonna have to help their pas clean out their front yards and on the peninsula...resi nts losing sleep over rising

waters. the storm preps near a swollen creek. and naughty or nice when it comes to saint nick? the holiday tradition of tradin bad presents. join us for cbs 5 eyewitness news this morning... beginng at 4:30. ,,,, here's a look at today's forecast in some cities around the country. washington d.c., heavy afternoon rain, 46 degrees. atlanta, early rain and wind,

54. st. louis, morning snow, 35 degrees. denver, periods of sun, 34. seattle, cloudy with some rain. 45 degrees. here's another look at the morning's top stories. christmas day storms killed at least three people. tornadoes touched down in the south. blizzard conditions in the midwest. more damaging storms are expected to stretch from texas to new england today. only six days until the fiscal cliff. president obama is expected to cut short his vacation today and head back to washington to meet with republicans. farmers worry about drought, insects, and disease. right now some say the biggest threat to their livelihood is congress. the fight in d.c. over the fiscal cliff is leaving the future uncertain for one law, and farmers depend on that law. >> reporter: eagle lake, texas, depends on rice.

it's been grown here since the 1800s. drought is usually the biggest threat, but the nervous talk in the drugstore now is about congress. >> without the farm bill, it really makes it uncertain for what you should do next year. >> reporter: steve is a pharmacist here and a rice farmer. >> people are nervous. >> very nervous. >> what are they saying when they're coming in? what are you hearing? >> what do we do? they don't know what to do. it's so uncertain right now that the banks don't know what to do, the farmers don't know what to do. they're out there plowing the land, getting it all prepared for next year with total uncertainty. >> reporter: at stake? $154 billion in federal farm aid and crop insurance sidelined by the fiscal cliff stalemate. benefits from the farm bill also guarantee rice farmer l.g. ron that his costs are covered when crops are bad or demand drops. >> so you would be out of it if there was no subsidy? >> i will be looking for another

job. absolutely. >> because you just can't make enough money to make a go of it? >> those risks are too great. i could lose it all. if the market -- if i plant rice and the market price is $12 and the next four months it goes down to $6, i lost $1 million in that time period. i can't sustain that. i'm broke in one year. >> reporter: the paramilitary bill impacts much more than rural america. 80% of the bill's $1 trillion in spending covers food stamps, school lunches, forest conservation, and renewable fuel. >> we're sitting right here in limbo waiting on our lame-duck congress to see if actually they will take up and reauthorize a new farm bill. >> he needs answers soon. the planting season is just weeks away. anna westerner, cbs news, eagle lake, texas. coming up after your local news on cbs this morning, last minute travel bargains.

this is "the cbs morning news." [ dog barking ] ♪ [ female announcer ] life is full of little tests, but your basic paper towel can handle them. especially if that towel is bounty basic. the towel that's durable, and scrubbable. in this lab demo, bounty basic is stronger than the leading bargain brand. everyday life? bring it with bounty basic. the strong but affordable picker-upper... now costs even less.

the strong but affordable picker-upper...

zeerchlgs the housing market continues to show signs of recovery. in california a large part of the real estate market is being fuelled by foreign buyers with deep pockets. ben tracy reports it's not the only thing they're buying. >> this is when all the -- >> scott meadows runs silenus vineyards in napa valley, and there's a good reason he put the american bald eagle on the bottle. >> it seems nationalistic. >> it does, doesn't it? >> that was a specific request for china. china is looking to bring parts of america to china. >> reporter: in 2010 this vineyard was for sale.

chinese investors bought, it and now 90% of the wine from here, that's 9,000 cases, is shipped to china. >> what does a chinese company want with a vineyard in mappa valley? >> there's a big demand for luxury goods and goods that are scaries and well made. rather than buying chinese-made products and sending money over there, they're buying american-made products and sending their money back over here. >> the jobs stay here? >> the jobs stay here. >> reporter: chinese firms flush with cash have invested $16.4 billion in the u.s. in the past decade. $1.3 billion in california companies. a record $560 million in just the past year. the chinese are also boosting the golden faith housing recovery. they've bought one out of every ten homes sold in the past year. >> compared to the high-end housing, like, in beijing, this is nothing. >> reporter: dee mung is a student at the university of california. his parents bought him this

nearly $1 million condo at the ritz carlton. they thought renting a dorm room was a waste of money. >> my parents decided to buy me a house as an investment outside china. >> reporter: jim jacobson has sold 22% of the residences at the ritz to affluent chinese. >> basically, they don't have a place to put their money. they look as their own economy as a place that's not very stable. the housing market is not very stable there either. >> reporter: this housing complex in irvine, california, is being built for chinese buyers. separate wok cooking rooms, no unlucky 4's in the addresses and multi-entrances for multi-generational living. scott meadows says chinese wealth is an opportunity, not a threat for american business. >> america is known for quality, so the chinese look at american-made products and foreign-made products in general as things they can trust. >> reporter: after all, that eagle is on the bottle because what so many chinese want is something made in the usa.

ben tracy, rbs news, napa valley. coming up after your local news on "cbs this morning" more on the violent weather in the south. we'll have live reports from alabama and indiana. plus, an eye-opening look at how your smartphone is collecting information about you and gale king sits down with legend buddy guy, a recent kennedy center northernee. that's the cbs morning news for this wednesday. have a great day. -- captions by vitac -- www.vitac.com

good morning. it's december 26-th. i'm brian hackney. frank mallicoat >> your realtime captioner: linda marie macdonald good morning, it's december 26, i'm brian hackney. frank mallicoat's wish for christmas was to have the

morning off and got it. >> yeah, i'm michelle griego. let's check the weather with elizabeth. >> we got a whole bunch of rain yesterday and it's still sprinkling outside. you can see cells moving over parts of the bay area so grab an umbrella. it's going to be like this scattered showers throughout the morning. in fact, the rain has caused some flooding concerns on the roads as well including 121 shut down both directions near highway 12. we'll have much more traffic and weather coming up. back to you guys. >> thank you. much of the northeast can expect rough weather from a massive storm system that caused christmas day havoc in the midwest and southeast. let's take a live look at indianapolis. we know that it is 30 degrees there and there's some light snow. cbs reporter edward lawrence has more on the wild weather. two funnels on the ground. >> reporter: a christmas day tornado tore